Jerome Powell is expected to deliver a speech at the Jackson Hole Economic Conference for the last time since being appointed to this position by President Donald Trump in 2017. Powell will give a speech closely monitored by global central bank leaders at an event held at Jackson Lake Lodge in Wyoming.
Powell's seven speeches at Jackson Hole so far have addressed various topics, from the history of monetary policy to employment goals, from anti-inflation strategies to commitments supporting the pandemic period. Each speech has been a highlight, revealing clues about the Fed's next interest rate move.
Here’s what he said in previous years and what happened next:
2018 – Powell emphasized the importance of gradually raising interest rates. Four interest rate hikes were made that year.
2019 – Powell, emphasizing the slowdown in global growth and trade uncertainties, stated that action would be taken when necessary. The Fed cut interest rates three times that year.
2020 – In an online speech due to the pandemic, Powell announced a new strategy, including a maximum employment goal and an average inflation target of 2%.
2021 – Powell argued that inflation would only be temporary and suggested that interest rates should not be raised hastily. However, this approach later faced criticism.
2022 – Powell made it clear that higher interest rates and an economic downturn to combat inflation would bring 'pain'. The Fed continued to raise interest rates aggressively.
2023 – Powell, believing that inflation is improving, stated that interest rate hikes could continue if necessary. The policy interest rate was held steady at 5.25%-5.50%.
2024 – Focusing on maintaining employment as inflation risks diminish, Powell stated that it is time to cut interest rates. The Fed will reduce interest rates by 50 basis points in September 2024.
This year's speech by Powell is expected to include important messages regarding whether the process of cutting interest rates will continue.
